HAYCARB PLC Co. Reg. No. PQ 59 No.400, Deans Road, Colombo-10, Sri Lanka

Transcription

1 HAYCARB PLC Co. Reg. No. PQ 59 No.400, Deans Road, Colombo-10, Sri Lanka Interim Report Six months ended 30th September 2014 Quarter-2 (2014/15)

2 Corporate Information NAME OF COMPANY Haycarb PLC (A quoted public company with limited liability, incorporated in Sri Lanka in 1973) COMPANY REGISTRATION NUMBER PQ 59 STOCK EXCHANGE LISTING The ordinary shares of the company are listed with the Colombo Stock Exchange of Sri Lanka DIRECTORS Mohan Pandithage (Chairman) Rajitha Kariyawasan (Managing Director) Arjun Senaratna Ranjeevan Seevaratnam - Retired on 25/06/2014 Dhammika Perera Sarath Ganegoda Ms Jeevani Abeyratne Dushantha Ranaraja Nimal Perera Dr Sarath Abayawardana Sujeewa Rajapakse Ms Shyamalie Weerasooriya (Alternate director to Mr. Dhammika Perera) - Resigned on 31/05/2014 SUBSIDIARIES ASSOCIATE AND JOINT VENTURE Carbokarn Co. Limited (Bangkok, Thailand) CK Regen Systems Co. Limited (Bangkok, Thailand) Shizuka Company Limited (Ratchaburi, Thailand) Eurocarb Products Limited (Bristol, England) Haycarb Holdings Australia (Pty) Limited (Victoria, Australia) Haycarb Holdings Bitung Limited (Tortola, British Virgin Islands) Haycarb USA Inc. (Woodlands, Texas, U.S.A) PT Mapalus Makawanua Charcoal Industry (Bitung, Indonesia) Puritas (Pvt) Limited Recogen (Pvt) Limited Ultracarb (Pvt) Limited Haycarb Value Added Products (Pvt) Limited PT. Haycarb Palu Mitra (Palu, Indonesia) Carbotels (Pvt) Limited - Associate Lakdiyatha (Pvt) Limited - Joint venture Puricarb Pte.Ltd. (Singapore) SECRETARIES Hayleys Group Services (Pvt) Limited 400, Deans Road, Colombo 10, Sri Lanka. Telephone Fax: info.sec@hayleys.com REGISTERED OFFICE Hayley Building 400, Deans Road, Colombo 10, Sri Lanka. Telephone: , , , Fax: E - mail : general@haycarb.com Website: 1

3 Haycarb PLC INCOME STATEMENTS Audited year ended For the period ended 6 months to 3 months to Change Rs.'000 Rs.'000 Rs.'000 % Rs.'000 Rs.'000 CONSOLIDATED +/(-) 10,348,066 Revenue 5,210,824 5,063, ,781,792 2,578,609 (7,608,179) Cost of sales (4,078,622) (3,705,517) 10 (2,152,512) (1,873,466) 2,739,887 Gross profit 1,132,202 1,358,347 (17) 629, ,143 27,921 Other operating income 23,698 28,126 (16) 12,199 4,401 (123,081) Selling & distribution expenses (65,337) (58,865) 11 (38,859) (30,735) (1,369,753) Administrative expenses (683,366) (664,305) 3 (353,100) (327,414) 104,326 Finance income 50,432 62,150 (19) 3,272 39,007 (347,631) Finance cost (94,652) (160,344) (41) (60,890) (83,159) (243,305) Net finance income/ (cost) (44,220) (98,194) 55 (57,618) (44,152) 1,761 Share of profit of equity accounted investee (net of tax) (510) (1,718) (70) ,033,430 Profit before income tax 362, ,391 (36) 192, ,615 (141,453) Income tax expense (58,703) (92,590) (37) (31,534) (46,678) 891,977 Profit for the period 303, ,801 (35) 161, ,937 Attributable to: 787,780 Equity holders of the company 261, ,854 (39) 130, , ,197 Minority interest 42,663 42,947 (1) 30,735 32, , , ,801 (35) 161, ,937 Earnings per share Basic earnings per share (Rs.) COMPANY 5,271,186 Revenue 2,476,131 2,776,805 (11) 1,374,687 1,457,469 (4,243,455) Cost of sales (2,128,528) (2,212,007) (4) (1,175,588) (1,190,029) 1,027,731 Gross profit 347, ,798 (38) 199, , ,063 Other operating income 120,461 52, ,498 26,488 (52,693) Selling & distribution expenses (17,855) (21,978) (19) (9,880) (13,860) (584,085) Administrative expenses (311,112) (316,100) (2) (154,252) (160,532) 73,325 Finance income 20,114 57,252 (65) ,842 (140,478) Finance cost (39,167) (100,415) (61) (20,067) (47,453) (67,153) Net finance income/(cost) (19,053) (43,163) 56 (19,718) (11,611) 550,863 Profit before income tax 120, ,097 (49) 52, ,925 (27,630) Income tax expense (7,000) (22,055) (68) (5,500) (7,055) 523,233 Profit for the period 113, ,042 (47) 47, , Basic earnings per ordinary share (Rs.) Notes on pages 7 and 8 form an integral part of these financial statements. Figures in brackets indicate deductions. 2

4 Haycarb PLC STATEMENTS OF OTHER COMPREHENSIVE INCOME Group Company For the Six months ended 30th September Rs. '000 Rs. '000 Rs. '000 Rs. '000 Profit for the Period 303, , , ,042 Other comprehensive income Net Exchange differences on translation of foreign entities 15,445 5, Net gain/(loss) on available-for-sale financial assets 160,309 (77,306) 160,309 (77,306) Other comprehensive income for the period (net of tax) 175,754 (71,327) 160,309 (77,306) Total comprehensive income for the period (net of tax) 479, , , ,736 Attributable to: Equity holders of the parent 432, , , ,736 Non-controlling interests 46,934 42, , , , ,736 3

5 Haycarb PLC STATEMENTS OF FINANCIAL POSITION Group Company Group Company Audited Audited Un audited Un audited Un audited Un audited As at 30th September Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 ASSETS Non-Current Assets 3,474, ,028 Property, plant & equipment 3,645,518 3,248, , ,761 36,846 36,845 Investment property 36,768 36,923 36,768 36, ,223 38,841 Intangible assets 243, ,008 32,359 42,900-1,341,765 Investments in subsidiaries - - 1,341,765 1,341, ,000 92,903 Investment in equity accounted investee 371, ,486 92,903 92, Non-current receivables from related parties - 8,686-8,686-33,446 Non current receivables from subsidiaries ,946 33, , ,878 Other non-current financial assets 604, , , ,815 31,889 - Deferred tax assets 32,891 10, ,568,032 2,854,706 4,934,940 4,334,037 3,033,646 2,825,199 Current Assets 2,123,407 1,019,656 Inventories 2,607,504 2,524,311 1,232,118 1,176,434 1,899,386 1,073,519 Trade & other receivables 1,993,399 1,453, , , ,324 Amounts due from subsidiaries , ,478 17,969 9,908 Amounts due from related parties 3,757 27,981-23, ,042 65,701 Other current assets 290, , , , , ,030 Cash and cash equivalents 450, , , ,234 5,001,671 3,074,138 5,345,846 5,041,976 3,262,853 2,787,567 9,569,703 5,928,844 Total Assets 10,280,786 9,376,013 6,296,499 5,612,766 EQUITY & LIABILITIES Equity 331, ,774 Stated capital 331, , , , , ,009 Capital reserves 373, , , ,009 4,061,796 2,753,566 Revenue reserves 4,449,076 3,934,598 2,937,782 2,569,355 4,767,477 3,293,349 Total equity attributable to equity holders of the co 5,154,757 4,640,279 3,477,565 3,109, ,418 - Non-controlling interests 515, , ,235,895 3,293,349 Total equity 5,670,109 5,136,979 3,477,565 3,109,138 Non-Current Liabilities 732, ,329 Interest bering loans & borrowings 735, , , ,239 21,219 8,100 Deferred tax liability 20,971 19,632 8,100 5, , ,739 Retirement benefit obligations 191, , , , , ,168 Total non-current liabilities 947, , , ,098 Current Liabilities 619, ,601 Trade & other payables 463, , , ,404 1,782,152 1,446,122 Interest bering loans & borrowings 2,045,355 1,666,981 1,654,143 1,316, , ,574 Other current liabilities 236, , , ,203-36,030 Amounts due to subsidiaries ,580 59, ,244 - Amounts due to related parties 861, ,845 2,625-67,369 - Income tax payable 56,425 76,089 7,000 12,317 3,392,859 1,881,327 Total current liabilities 3,662,823 3,261,278 2,137,665 1,758,530 4,333,808 2,635,495 Total liabilities 4,610,677 4,239,034 2,818,934 2,503,628 9,569,703 5,928,844 Total equity and liabilities 10,280,786 9,376,013 6,296,499 5,612, Net assets per share ( Rs.) "It is certified that the financial statements set out on pages 2 to 8 have been prepared in compliance with the requirements of the Companies Act No. 07 of 2007" Sgd.. Ms. M J A S Abeyratne Finance Director Signed for and on behalf of the Board, Sgd.. A M Pandithage Chairman 28th October 2014 Sgd.. H S R Kariyawasan Managing Director 4

6 STATEMENT OF CHANGES IN EQUITY For the Six months ended 30th September Attributable to equity holders of the parent Other Reserves Stated Capital Available Exchange General Retained Non Total capital reserves -for-sale fluctuation reserve earnings Total controlling equity reserve on reserve interest GROUP Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Balance as at , , , , ,353 2,354,585 4,381, ,247 4,725,804 Profit for the period , ,854 42, ,801 Other comprehensive income for the period - - (77,306) 6, (70,445) (882) (71,327) Cost on share issue (1,001) (1,001) - (1,001) Incorporation of subsidiary , ,388 Movement in reserve in equity accounted investee (8,549) (8,549) - (8,549) Dividends (89,137) (89,137) (89,137) Balance as at , , , , ,353 2,683,752 4,640, ,700 5,136,979 Balance as at , , , , ,353 2,949,723 4,767, ,418 5,235,895 Profit for the period , ,101 42, ,764 Other comprehensive income for the period ,309 11, ,483 4, ,754 Movement in reserve in equity accounted investee ,833 43,833-43,833 Dividends (89,137) (89,137) - (89,137) Balance as at , , , , ,353 3,165,520 5,154, ,352 5,670,109 Stated Capital General Available Retained Total capital reserves reserve for sale reserve earnings equity COMPANY Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Rs. '000 Balance as at , , , ,460 1,590,943 3,061,539 Profit for the year , ,042 Other comprehensive income for the period (77,306) - (77,306) Dividends (89,137) (89,137) Balance as at , , , ,154 1,715,848 3,109,138 Balance as at , , , ,217 1,919,996 3,293,349 Profit for the year , ,044 Other comprehensive income for the period , ,309 Dividends (89,137) (89,137) Balance as at , , , ,526 1,943,903 3,477,565 5

7 Cash Flow Statements - - (0) Group Company (0) Audited Audited Group Company For the Six months ended 30th September Rs.' 000 Rs.' 000 Rs.' 000 Rs.' 000 Rs.' 000 Rs.' 000 CASH FLOWS FROM OPERATING ACTIVITIES 1,033, ,863 Profit before tax 362, , , ,097 Adjustments for : 227,897 62,679 Depreciation and impairment of property, plant & equipment 124, ,229 35,435 30,072 (1,487) - Amortization of non-current financial assets 897 (707) ,577 - Finance income on leasehold assets (Lakdiyatha) 5, ,956 7,881 Amortization of intangible assets 7,524 1,571 6,482 1,571 1,836 - (Gain)/loss on disposal of property, plant & equipment (443) (123,809) (5,325) Gain/(loss) on translation on foreign currencies 44 (18,273) (1,804) (1,006) (29,228) - Exchange difference on translation of foreign entities 3,171 4, (104,326) (73,325) Finance income (50,432) (62,151) (20,114) (57,252) 347, ,478 Finance cost 94, ,345 39, ,415 - (124,655) Dividend income - subsidiaries - - (47,982) - (1,761) - Share of profit from equity accounted investee 510 1, (915) (724) Provision/(reversal) for slow moving inventory 1,050 1,200 1,050 1,200 10,812 - Provision / (reversal) for unrealized profit on inventories 5,586 8, ,351 - Provision / (reversal) of bad and doubtful debts (2,049) (356) ,153 30,051 Provision for retiring gratuity 20,000 30,000 20,000 30,000 1,413, ,923 Operating cash flows before working capital changes 573, , , ,097 Working Capital Adjustments: (284,324) (208,766) (Increase)/decrease in trade and other receivables and Prepayme (152,617) 31,719 33,251 (12,740) 26,943 (158,340) (Increase)/decrease in amounts receivable from related parties 14,212 7,570 (155,953) (105,321) 44,741 25,584 (Increase)/decrease in inventories (490,733) (356,274) (213,512) (133,118) 244,324 89,000 Increase/(decrease) in trade and other payables (180,373) 148,601 40,465 73,589 (58,965) (10,341) Increase/(decrease) in amount due to related parties 199,851 11,636 2,625-1,385, ,060 (36,371) 652,849 (140,846) 163,507 (141,650) (74,213) Interest paid (68,190) (68,848) (32,502) (33,936) (223,296) (53,156) Income tax paid (70,897) (142,584) - (34,010) (14,633) (14,633) Retiring gratuity paid (15,778) (12,087) (15,779) (12,087) 1,006, ,058 Net cash flows from operating activities (191,236) 429,330 (189,127) 83,474 CASH FLOWS FROM INVESTING ACTIVITIES 6,204 - Proceeds from sale of property, plant & equipment 2, (1,023,667) (193,199) Purchase of property, plant & equipment (284,744) (564,738) (52,051) (98,403) - (318,268) Investment in subsidiary Shares (318,268) (19,161) (8,746) Acquisition of intangible assets - (12,561) - (6,495) 12,915 10,545 Interest received 3,142 7,567 1,305 5, Dividend received from equity accounted investee , ,104 Other dividends received 12,226 12,208 60,002 12, Minority investment in subsidiary - 110, Net payments to minority shareholders (1,000,399) (362,635) Net cash flows used in investing activities (267,056) (445,756) 9,442 (404,701) 5,858 (179,577) Net cash inflow/(outflow) before financing activities (458,292) (16,426) (179,685) (321,227) CASH FLOWS FROM FINANCING ACTIVITIES (1,001) - Transaction costs on issue of shares - (1,001) ,388 - Investment made by minority share holders , ,606 Proceeds from borrowings 130, , ,787 (222,221) (122,942) Repayment of borrowings (144,762) (126,960) (75,378) (73,256) (178,274) (178,274) Dividends paid to equity holders of the parent company (90,910) (89,146) (90,910) (89,146) (57,714) - Dividends paid to non-controlling interest ,785 83,390 Net cash flows from /(used in) financing activities (104,790) 36,680 (166,288) 91,385 41,643 (96,187) Net increase/(decrease) in cash and cash equivalents (563,082) 20,254 (345,973) (229,842) (820,882) (799,036) Cash and cash equivalents at the beginning of period (779,239) (820,882) (895,223) (799,036) (779,239) (895,223) Cash and cash equivalents at the end of period (Note A) (1,342,321) (800,628) (1,241,196) (1,028,878) Analysis of cash and cash equivalents as at 30th September 556, ,648 A) Bank and cash balances 372, , ,325 39, , ,382 Short term deposits 78, ,478 31, , , , , , , ,234 (1,510,106) (1,276,253) Bank overdrafts & short term loans (1,792,812) (1,478,366) (1,484,274) (1,230,112) (779,239) (895,223) Cash and cash equivalents (1,342,321) (800,628) (1,241,196) (1,028,878) 6

8 Haycarb PLC SEGMENT ANALYSIS INDUSTRY SEGMENTS Turnover-Net Group External Intra-group Rs.'000 Rs.'000 Rs.'000 Rs.'000 Activated carbon 5,048,280 1,558,714 6,606,994 6,171,614 Environmental engineering 162, ,544 81,867 5,210,824 1,558,714 6,769,538 6,253,481 Intra-group sales (1,558,714) (1,189,617) 5,210,824 5,063,864 Industry segment results Profit before tax Group Rs.'000 Rs.'000 Activated carbon 404, ,242 Environmental engineering 14,893 (220) Leisure-associate (510) (1,718) 418, ,304 Consolidation adjustments (50,636) (1,104) Unrealised profit on intra-group sales (5,586) (8,809) 362, ,391 INVESTOR INFORMATION Three months ended Market value of shares Closing price Highest price recorded for the period (Rs.) (24/09/2014) (19/07/2013) Lowest price recorded for the period (Rs.) (10/04/2014) (29/08/2013) Market capitalisation (Rs.) 5,645,351,250 5,556,214,125 P/E ratio Dividend payments Final dividend 2013/14 Rs.3.00 per share (2012/13 Rs per share) 89,137,125 89,137,125 Share trading information No of transactions No of shares traded 505, ,162 Value of shares traded (Rs.) 97,262,528 68,647,915 7

9 Haycarb PLC Notes As at 30th September Rs.'000 Rs.' Issued and fully paid ordinary shares At the beginning of the year-29,712,375 ( ,712,375) 331, ,774 As at 30th September 331, , Disclosures 2.1 These interim financial statements which have not been audited,were prepared in accordance with the accounting policies set out in the Annual Report for the year ended 31 March 2014 and comply with the Sri Lanka Accounting Standards (SLFRS/LKAS). They also provide the information required by the Colombo Stock Exchange and LKAS 34 - Interim Financial Reporting. 2.2 There are no material post balance sheet events that require adjustments to or disclosure in accounts. 2.3 There has not been a significant change in the nature of the contingent liabilities which are disclosed in the Annual Report for the year ended 31st March Where necessary, comparative figures have been re-classified to conform with the current period's presentation 8

10 HAYCARB PLC FIRST TWENTY SHAREHOLDERS AS AT Name of the Shareholder No.of Shares as at 30/09/ Hayleys PLC No.3 Share Investment Account 20,125, Employees Provident Fund 1,417, Employees Trust Fund Board 777, National Savings Bank 424, Promar Overseas SA 397, Mr. T. Ueda 258, Bank of Ceylon No.1 Account 251, Mrs. J. K. P. Singh 214, M. Radhakrishnan (Deceased) 201, Dr. D. Jayanntha 150, Dr. H. S. M. Singh & Mrs. J. K. P. Singh 150, Mr. D. F. G. Dalpethado 142, E.W. Balasuriya & Co. (Pvt) Ltd 139, Mr. S. Krishnananthan 128, Mr. H. S. Gill 123, Hallsville Trading Group Inc. 120, Commercial Bank of Ceylon PLC A/C No , Mr. J. S. A. B. Singh & Mrs. G. K. A. H. Singh 100, Mr. A. Arulthakshanan 71, Mr. H.G. Carimjee (Deceased) 70, TOTAL 25,368, % DIRECTORS SHAREHOLDING AS AT No. of Shares as Name of the Director at Mr.A.M.Pandithage 2,379 Mr.S.C.Ganegoda 1,815 Mr.D.E.Ranaraja 10,000 Mr. H. S. R. Kariyawasan * 15,500 Total 29,694 * Shares held jointly with Mrs. K. H. S. Kariyawasan PERCENTAGE OF PUBLIC HOLDING AS AT Total Number of shareholders representing the public holding 1,994 * Mr.K.D.D.Perera holds directly and indirectly 48.38% of the total issued shares of Hayleys PLC which holds 20,125,103 shares in Haycarb PLC. 9